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Real Estate (Tables)
 12 Months Ended
Dec. 31, 2017
Real Estate [Abstract]  
Schedule of real estate assets
The Company's real estate assets were comprised of the following ($ in thousands):
 
Net Lease(1)
 
Operating
Properties
 
Total
As of December 31, 2017
 
 
 
 
 
Land, at cost
$
219,092

 
$
203,278

 
$
422,370

Buildings and improvements, at cost
888,959

 
318,107

 
1,207,066

Less: accumulated depreciation
(292,268
)
 
(55,137
)
 
(347,405
)
Real estate, net
815,783

 
466,248

 
1,282,031

Real estate available and held for sale (2)
—

 
68,588

 
68,588

Total real estate
$
815,783

 
$
534,836

 
$
1,350,619

As of December 31, 2016
 
 
 
 
 
Land, at cost
$
231,506

 
$
211,054

 
$
442,560

Buildings and improvements, at cost
987,050

 
311,283

 
1,298,333

Less: accumulated depreciation
(307,444
)
 
(46,175
)
 
(353,619
)
Real estate, net
911,112

 
476,162

 
1,387,274

Real estate available and held for sale (2)
155,051

 
82,480

 
237,531

Total real estate
$
1,066,163

 
$
558,642

 
$
1,624,805


_______________________________________________________________________________
(1)
In 2014, the Company partnered with a sovereign wealth fund to form a venture to acquire and develop net lease assets (the "Net Lease Venture") and gave a right of first refusal to the Net Lease Venture on all new net lease investments (refer to Note 7 for more information on the Net Lease Venture). The Company is responsible for sourcing new opportunities and managing the Net Lease Venture and its assets in exchange for a promote and management fee.
(2)
As of December 31, 2017 and 2016 the Company had $48.5 million and $82.5 million, respectively, of residential properties available for sale in its operating properties portfolio. As of December 31, 2016, net lease includes the Company's ground lease ("Ground Lease") assets that were reclassified to "Real estate available and held for sale" (refer to "Disposition of Ground Lease Business" below). As of December 31, 2016, the carrying value of the Company's Ground Lease assets were previously classified as $104.5 million in "Real estate, net," $37.5 million in "Deferred expenses and other assets, net," $8.2 million in "Deferred operating lease income receivable, net" and $3.5 million in "Accrued interest and operating lease income receivable, net" on the Company's consolidated balance sheet.
Disclosure of real estate available and held for sale
The following table presents the carrying value of properties transferred to held for sale, by segment ($ in millions)(1):
 
 
Year Ended December 31,
Property Type
 
2017
 
2016
 
2015
Operating Properties(2)
 
$
20.1

 
$
16.1

 
$
2.9

Net Lease
 
0.9

 
1.8

 
8.2

Total
 
$
21.0

 
$
17.9

 
$
11.1

_______________________________________________________________________________
(1)
Properties were transferred to held for sale due to executed contracts with third parties or changes in business strategy.
(2)
During the year ended December 31, 2015, the Company transferred a commercial operating property with a carrying value of $2.9 million to held for investment due to a change in business strategy.
Income (loss) from discontinued operations
The transactions described above involving the Company's Ground Lease business qualified for discontinued operations and the following table summarizes income from discontinued operations for the years ended December 31, 2017, 2016 and 2015 ($ in thousands)(1):
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Revenues
 
$
6,430

 
$
21,839

 
$
18,520

Expenses
 
(1,491
)
 
(3,569
)
 
(3,443
)
Income from discontinued operations
 
$
4,939

 
$
18,270

 
$
15,077

_______________________________________________________________________________
(1)
Revenues primarily consisted of operating lease income and expenses primarily consisted of depreciation and amortization and real estate expense. For the year ended December 31, 2017, revenues also includes income from sales of real estate.

The following table presents cash flows provided by operating activities and cash flows used in investing activities from discontinued operations for the years ended December 31, 2017, 2016 and 2015 ($ in thousands).
 
 
Year Ended December 31,
 
 
2017
 
2016
 
2015
Cash flows provided by operating activities
 
$
5,702

 
$
16,662

 
$
14,446

Cash flows used in investing activities
 
(534
)
 
(7,972
)
 
—
Schedule of future minimum rental payments for operating leases
Future minimum operating lease payments to be collected under non-cancelable leases, excluding customer reimbursements of expenses, in effect as of December 31, 2017, are as follows ($ in thousands):
Year
 
Net Lease Assets
 
Operating Properties
2018
 
$
101,135

 
$
37,009

2019
 
101,448

 
33,748

2020
 
100,894

 
31,952

2021
 
101,288

 
30,075

2022
 
100,040

 
20,187

Future minimum lease obligations under non-cancelable operating leases are as follows ($ in thousands):
2018
$
4,970

2019
3,919

2020
3,812

2021
1,439

2022
837

Thereafter
2,914
Schedule of proceeds from other dispositions
The following table presents the proceeds and income recognized for properties sold, by property type ($ in millions)(1):
 
 
Year Ended December 31,
 
 
2017(1)
 
2016
 
2015(2)
Operating Properties
 
 
 
 
 
 
       Proceeds
 
$
41.3

 
$
326.9

 
$
294.9

       Income from sales of real estate
 
4.5

 
75.4

 
53.7

 
 
 
 
 
 
 
Net Lease
 
 
 
 
 
 
       Proceeds
 
$
175.4

 
$
117.2

 
$
100.8

       Income from sales of real estate
 
87.5

 
21.1

 
40.1

 
 
 
 
 
 
 
Total
 
 
 
 
 
 
       Proceeds
 
$
216.7

 
$
444.1

 
$
395.7

       Income from sales of real estate
 
92.0

 
96.5

 
93.8

_______________________________________________________________________________
(1)
During the year ended December 31, 2017, the Company sold a net lease property and recognized a gain on sale of $62.5 million. Prior to the sale, the Company acquired the noncontrolling interest with a carrying value of $3.5 million for $12.0 million.
(2)
During the year ended December 31, 2015, the Company sold a commercial operating property for $68.5 million to a newly formed unconsolidated entity in which the Company owns a 50.0% equity interest (refer to Note 7). The Company recognized a gain on sale of $13.6 million, reflecting the Company's share of the interest sold to a third party, which was recorded as "Income from sales of real estate" in the Company's consolidated statements of operations. During the year ended December 31, 2015, the Company, through a consolidated entity, sold a leasehold interest in a commercial operating property with a carrying value of $126.3 million for net proceeds of $93.5 million and simultaneously entered into a ground lease with the buyer with an initial term of 99 years. The Company sold the leasehold interest at below fair value to incentivize the buyer to enter into an above market ground lease. As a result, the Company recorded no gain or loss on the sale and recorded a lease incentive asset of $32.8 million, which is included in "Real estate available and held for sale" on the Company's consolidated balance sheets. In December 2015, the Company acquired the noncontrolling interest in the entity for $6.4 million.